To defer part of the compensation of senior employees of large financial institutions (and their subsidiaries), to use such deferred amounts to pay any civil or criminal fines that may be levied on the institution (or subsidiary), and for other purposes.
About This Bill
Committee
Latest Action · June 25, 2026
Referred to the House Committee on Financial Services.
The Bank Failure Accountability Act requires large financial institutions with over $1 billion in assets to defer at least 50 percent of compensation for senior employees when their pay exceeds seven times the median employee's salary at the institution. These deferred funds must be held in a separate account and used first to pay any civil or criminal fines levied against the institution, or in the case of bank failures, to reimburse depositors before drawing on federal insurance funds. The length of time compensation is deferred varies by institution size, ranging from 2 to 8 years, and any deferred compensation that cannot be repaid due to insufficient funds in the deferment account is permanently canceled. The bill applies to banks, credit unions, investment firms, broker-dealers, and mortgage companies, with enforcement and rule-making authority delegated to federal banking regulators and the Securities and Exchange Commission.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.